ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD)
A class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of purchasers of ACADIA Pharmaceuticals Inc. (“ACADIA”) (ACAD) publicly traded securities during the period between April 29, 2016 to July 9, 2018 (the “Class Period”).
The complaint charges ACADIA and certain of its officers with violations of the Securities Exchange Act of 1934. ACADIA is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. ACADIA’s product opportunities include its novel drug NUPLAZID (pimavanserin), which was approved by the U.S. Food and Drug Administration (“FDA”) on April 29, 2016 for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. NUPLAZID became available in the United States in May 2016.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding ACADIA’s business and prospects, including that medical professionals had expressed significant concern that NUPLAZID had been approved too quickly, based on inadequate evidence that the drug was safe or effective, and that a large number of adverse events had been reported to the FDA for patients who were using NUPLAZID. As a result of defendants’ false statements and/or omissions, ACADIA securities traded at artificially inflated prices during the Class Period.
On April 9, 2018, CNN issued a report claiming that medical professionals, including physicians, researchers and other experts, had expressed significant concern that NUPLAZID was approved too quickly, based on inadequate evidence that the drug was safe or effective. The CNN report also called attention to a large number of adverse events (often deaths) reported to the FDA for patients who were using NUPLAZID. On this news, the Company’s share price declined $5.03 per share, or 23.4%, to close at $16.50 per share on April 9, 2018. On April 25, 2018, CNN reported that the FDA was re-examining the safety of NUPLAZID. On this news, the Company’s share price fell $4.27 per share, or 21.9%, to close at $15.20 per share on April 25, 2018.
Then, on July 9, 2018, the Southern Investigative Reporting Foundation issued a report, entitled “Acadia Pharmaceuticals: This Is Not a Pharmaceuticals Company,” alleging that ACADIA “has accomplished its growth in ways that have attracted intense regulatory scrutiny for other drug companies,” including “dispensing wads of cash to doctors to incentivize prescription writing and downplaying mounting reports of patient deaths.” On this news, the Company’s share price again dropped $1.21 per share, or 6.8%, to close at $16.63 per share on July 9, 2018.
If you are a current shareholder and/or purchased stock between April 29, 2016 to July 9, 2018, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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